Fibra Monterrey, First Company in Mexico to Replace LIBOR Rate with SOFR

Fibra Mty, a real estate investment trust, becomes the first company in Mexico to transition from the LIBOR to the SOFR rate in its $150 million credit.

FIBRA Monterrey manages several industrial properties such as this one owned by Ventanas Cuprum. Photo: Facebook (FMTY).

03/17/2022

Fibra Mty, a real estate investment trust in the industrial and office sector, is positioned as the first company in Mexico to transition from the LIBOR Rate to the SOFR Rate in its US$150 million unsecured syndicated loan, issued last December 3, 2021.

"The original one-month LIBOR benchmark interest rate was replaced with the one-month term SOFR rate and the margin over the benchmark rate remained unchanged. The LIBOR-SOFR transition language considered since the execution of the credit facility was indispensable for an orderly adoption," Fibra MTY stated in its press release, in which it highlighted that it is a pioneer in making such transition in Mexico.

It also stressed that this move eliminated the risk related to the cessation of publication of the LIBOR rate without generating a material effect on the financial cost.

This contributes to the predictability of flows that is typical of the issuer's business model, and allows it to participate in the hedging market for this loan.

Read the full article (in Spanish)

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